2018 (7) TMI 744

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....of the CIT (Appeals) is opposed to law and the facts and circumstances of the case. 2. On the facts and in circumstances of the case whether the CIT(A) in right in holding that the assessee is eligible for depreciation on account of non compete fee which is paid on account of trade and commerce and is a commercial right to enforce performance of the terms of the agreement. 3. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer be restored. 4. The appellant craves leave to add, alter, amend or delete any of the grounds that may be urged at the time of....

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....h Court of Karnataka in the case of Ingersoll Rand International Ltd. 48 taxman.com 349 (Kar) wherein it was held that non-compete fee confers commercial rights which is akin to know-how, patents, copyrights, trademarks licenses, franchises and commercial rights, and therefore was intangible asset on which depreciation has to be allowed as per the provisions of section 32(1)(ii) of the Act. 5. The AO, however, did not allow claim of assessee on the ground that the department has not accepted the correctness of the decision of the Hon'ble High Court of Karnataka referred to by the assessee. According to the AO, because of low tax effect, no appeal was filed against the decision of the Hon'ble High Court of Karnataka. The AO referred to th....